Country Garden Holdings Co., a Chinese property developer, is facing financial difficulties due to its massive debt burden. In light of this, its venture capital arm, Country Garden Venture Capital, is considering selling its stake in ChangXin Memory Technologies Inc., a chipmaker that may come under US sanctions. Sources familiar with the matter say that the venture capital arm is seeking around 2 billion yuan ($276 million) for its undisclosed stake in the company.
As a prominent player in China’s real estate crisis, Country Garden is desperately searching for capital to satisfy its creditors. Last month, the company extended some yuan bond repayments, and it is currently dealing with a winding-up petition from a creditor in Hong Kong. This petition is a result of Country Garden’s failure to make payments on a loan worth approximately $205 million, along with accrued interest.